Friday, March 14, 2014

Affordable Housing in Calgary

As anyone in Calgary knows, rental housing is becoming more and more difficult to find. The vacancy rate is in the 1% range and dropping. Housing prices are rising in response. How can anyone pay rent and save a down payment for a home while paying their bills? It can be tough. Affordable Housing Calgary has come up with a solution. They will provide 2/3's of the down payment for a condo unit. You only need $2000 for your portion of the down payment. If you are interested in this program , contact Calgary Affordable Homes
If you want to purchase a home and need help, feel free to contact me at 403- 836-1201 or via my website at .
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Tuesday, March 11, 2014

New to Canada issues

I recently came across a problem with a couple which I had not encountered before. My clients wanted to buy a home after renting for the year and a half since they arrived in Canada. They saved diligently and were able to put down a 10% down payment. When I asked them if the money was in the bank they replied "yes".
I told them that I would need an employment letter and recent pay stub and 3 months of bank statements. They quickly responded with the required items.
When I reviewed the bank statements I found that they had just put the bulk of the downpayment money into their account a week before. The reason CMHC and the lenders ask for the 3 months of bank statements is to show that the people have saved the money over time.
This is a requirement of the Anti- Money Laundering laws passed a few years ago.
I asked them where the money came from and they said they had saved it. When I asked where, they told me that in their country people do not trust banks so they put the money under their mattress. In this case, they rented a safe deposit box and saved it there.
When I spoke to the lender they said this was not acceptable. The funds could easily be the results of crime..
In the end, the bank they had their account in was the only lender who could help them.
Personnel at the bank had seen them withdraw hundreds of dollars and then go to their safe deposit box. Whey they never said anything to this couple I'll never know.
Be sure to put your funds for downpayment all in one account. Make sure your funds are there for at least 90 days. If you are using RRSP's you must have held them for at least 90 days.
If you follow this simple rule, you can avoid disappointment and get into the house of your dreams faster.If you have any questions about down payments and the New to Canada program , contact me via my website.

Friday, March 7, 2014

Understanding yoru Credit Report

Understanding Your Credit Report

As credit has become more and more abundant in our society, your credit report, and thus your credit rating, has become more important in your daily life. Your credit rating affects all aspects of your financial activities when it comes to borrowing money. Your credit rating also has the ability to affect the job you get, the apartment you rent, and even the ability to open a bank account.
Your credit report itself is simply a listing of all of your mortgage and consumer debt. Here in Canada, the two main credit reporting agencies are Trans Union and Equifax. Both agencies have a credit history file on anyone who has ever borrowed money. Every time you borrow money, or make a payment on a loan or credit card, the lender then reports the information about the transaction to these two agencies. In addition to credit information, you will also find liens and judgments on your credit report as well as your address and possibly your work history. The accumulation of all of this information is called your credit report.
The information on your credit report varies based on your creditors and what they have reported about you. Potential lenders and others, such as employers, view your credit history as a reflection of your character. Whether we like it or not, our financial habits have a lot to say about the way in which we choose to live our lives.
The credit score, or beacon score, is a number which gives mortgage lenders an idea of your lending risk.
Credit scores range from 300 to 900, the higher your credit score the better. The mortgage products and interest rate that you will qualify for are often determined by your credit score.
One thing that many people do not know is that you have the legal right to obtain a copy of your credit report. A mortgage professional can help you obtain a copy of this report and go through it with you to verify that all of the information is true and correct.
The good news is that your credit report is a working document. This means that you have the ability over time, to repair any damaged credit and increase your credit score.
Did you know that a mortgage broker can help you improve your credit rating and get you the financing you need for a home?  
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